Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1474 By: Boren
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7 AS INTRODUCED
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8 An Act relating to oil and gas production; defining
8 terms; requiring the Corporation Commission to levy
9 certain fees; authorizing collection of certain
9 credits; authorizing promulgation of rules; creating
10 the Water and Agricultural Protection Revolving Fund;
10 stating purpose; providing for codification; and
11 providing an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 155 of Title 52, unless there is
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17 created a duplication in numbering, reads as follows:
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18 A. For the purposes of this section:
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19 1. "Agricultural land" means land currently used or recently
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20 used for the purpose of farming, grazing, or ranching;
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21 2. "Best environmental practices" means activities approved by
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22 the Corporation Commission that include, but are not limited to:
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23 a. reduced pad footprint and consolidated well pads,
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24 b. produced water recycling or reuse,
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Req. No. 3089 Page 1
1 c. use of closed-loop drilling systems,
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2 d. topsoil preservation and rapid interim reclamation,
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3 e. livestock-compatible fencing and site design, and
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4 f. protection of riparian buffers;
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5 3. "Operator" means any person authorized by the Corporation
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6 Commission to drill, complete, and operate a well for the intended
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7 development and production of oil, gas, or other hydrocarbons,
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8 regardless of whether the well is completed or produces; and
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9 4. "Produced water" means formation water, brine, flowback, or
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10 other wastewater produced in connection with oil and gas
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11 development.
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12 B. The Corporation Commission shall levy an annual surface
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13 impact fee of Twenty-five Dollars ($25.00) per acre for any surface
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14 disturbance associated with oil and gas operations on agricultural
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15 land. The fee shall be applied from the date of initial disturbance
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16 until the date the Corporation Commission certifies successful
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17 reclamation. No fee shall be assessed on acres restored to
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18 agriculture use within twelve (12) months or acres used for multi-
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19 use grazing under an approved surface-use conservation plan.
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20 C. The Corporation Commission shall levy a produced water
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21 impact fee of one cent ($0.01) per barrel on any produced water
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22 generated within this state. Operators may deduct volumes of
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23 produced water that is recycled and reused for drilling or
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24 completion, is treated and beneficially reused for agricultural or
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Req. No. 3089 Page 2
1 industrial purposes, or is disposed of in disposal wells that
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2 utilize advanced seismicity-reduction practices as determined by the
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3 Corporation Commission. Recycled water volumes shall receive an
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4 additional credit of fifty percent (50%) per barrel.
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5 D. 1. An operator shall be eligible for a surface stewardship
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6 credit of up to one hundred percent (100%) of the surface impact fee
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7 if the operator implements best environmental practices that are
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8 certified by the Corporation Commission to include, but not be
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9 limited to:
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10 a. interim reclamation completed within six (6) months of
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11 well completion,
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12 b. a reduced pad footprint, to be less than three (3)
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13 acres for horizontally drilled wells,
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14 c. pollinator-friendly reclamation seed mixes, and
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15 d. consolidated production facilities to reduce surface
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16 footprint by at least forty percent (40%).
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17 2. An operator shall be eligible for a water stewardship credit
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18 of up to seventy-five percent (75%) of produced water fees if the
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19 operator:
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20 a. recycles or reuses more than fifty percent (50%) of
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21 produced water generated,
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22 b. invests in regional water recycling hubs or
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23 cooperative reuse networks, and
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24 c. demonstrates an annual reduction in disposal volumes.
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Req. No. 3089 Page 3
1 E. The Corporation Commission shall promulgate rules to
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2 effectuate the provisions of this section.
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3 SECTION 2. NEW LAW A new section of law to be codified
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4 in the Oklahoma Statutes as Section 155.1 of Title 52, unless there
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5 is created a duplication in numbering, reads as follows:
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6 There is hereby created in the State Treasury a revolving fund
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7 for the Corporation Commission to be designated the "Water and
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8 Agricultural Protection Revolving Fund". The fund shall be a
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9 continuing fund, not subject to fiscal year limitations, and shall
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10 consist of all monies received by the Corporation Commission from
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11 fees collected pursuant to this act, federal grants, private
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12 contributions, and legislative appropriations provided for the
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13 purpose of testing groundwater and rural drinking water systems in
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14 connection with a pollution concern that stems from a well,
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15 restoring soil and land for farms and ranches affected by oil and
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16 gas operations, plugging and reclaiming abandoned wells, providing
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17 technical assistance programs, and creating water recycling research
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18 programs. All monies accruing to the credit of the fund are hereby
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19 appropriated and may be budgeted and expended by the Corporation
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20 Commission for the purpose provided for in this section.
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21 Expenditures from the fund shall be made upon warrants issued by the
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22 State Treasurer against claims filed as prescribed by law with the
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23 Director of the Office of Management and Enterprise Services for
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24 approval and payment.
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Req. No. 3089 Page 4
1 SECTION 3. This act shall become effective November 1, 2026.
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3 60-2-3089 CN 1/8/2026 2:11:59 PM
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Req. No. 3089 Page 5Every fact on this page links to its source, starting with the official bill record.